The Central Bank of Nigeria absorbed approximately N4.74 trillion across three Open Market Operations auctions conducted on June 22 and June 23, extending its aggressive liquidity sterilisation campaign into the final week of June 2026.
Data from the CBN, analysed by Nairametrics, showed combined subscriptions of roughly N4.8 trillion against a total offer of N1.2 trillion, representing an oversubscription rate of 300%. The apex bank accepted nearly all of the N4.7 trillion in successful bids, rejecting only N72.81 billion across all three instruments.
The week's operations follow a trend of increasing liquidity withdrawal that began at the start of June, driven by an anticipated N10.90 trillion liquidity surge during the month, according to the Financial Markets Dealers Association.
Investor appetite was strongest for longer-dated instruments. The 134-day OMO bill maturing November 3 emerged as the most heavily demanded security, attracting N2.052 trillion in subscriptions against a N300 billion offer -- a 6.84x oversubscription ratio. The CBN accepted N2.016 trillion, or 6.72 times the offer size, rejecting N35.81 billion. No previous OMO amount was repaid at that auction, making the entire allotment a net liquidity withdrawal.
The 140-day bill maturing November 10 recorded a 5.21x oversubscription ratio, drawing N1.562 trillion in bids against a N300 billion offer. The CBN allotted N1.525 trillion and rejected approximately N37 billion. Despite offering the lowest stop rate of 19.99%, the instrument drew massive demand, confirming that institutional investors are prioritising duration and yield certainty over maximising marginal returns.
The 99-day bill maturing September 29 attracted N658 billion against a N300 billion offer (2.19x oversubscription), with a stop rate of 20.40%. The 70-day bill maturing September 1 recorded N538 billion in subscriptions against a N300 billion offer (1.79x oversubscription) and recorded the highest stop rate of 20.75%, reflecting the short-duration premium investors demand in an uncertain rate environment.
Stop rates across all four instruments ranged from 19.99% to 20.75%, maintaining a structural premium above the CBN's Monetary Policy Rate and reinforcing the appeal of OMO bills as a risk-free, high-yield alternative to equity exposure.
The scale of the final week's operations also reflects the CBN's strategy of extending the maturity profile of its OMO portfolio. By concentrating allotments in longer-dated instruments, the apex bank reduces the frequency and scale of near-term liquidity injections from maturing bills.
Cumulative OMO sales between January and April 2026 had already reached approximately N30.12 trillion. The CBN's acceptance of significantly more than its stated offer size across multiple June auctions suggests the bank is using oversubscription headroom to maximise liquidity absorption at each session.
Despite the scale of sterilisation, excess liquidity remains a defining feature of Nigeria's banking system. The June OMO auction cycle has confirmed that high yields of about 20% on short-to-medium-tenor fixed income instruments continue to intensify competition for capital between OMO bills and the equities market, a dynamic analysts have highlighted as a key driver of the NGX's June correction.
